The Federal Reserve announced its latest interest rate decision in the early hours of the 30th (Beijing Time), opting to keep the federal funds rate unchanged within the 3.50% to 3.75% range.

Major Indices Close in Red, Tech Sector Bears the Brunt

U.S. stock indices closed lower across the board:

• The Dow Jones Industrial Average fell 2.18% to 15,948.86.

• The Nasdaq Composite declined 1.74% to 24,442.94.

• The S&P 500 slipped 1.51% to 7,316.40.

The Artificial Intelligence (AI) and semiconductor sectors became the epicenter of market selling pressure, fueling a broad pullback in tech stocks.

TSMC ADR Drops Over 4%; NVIDIA and Tesla Weakened

In individual stock performance, TSMC ADR (TSM) closed at $374.72, down $17.59, marking a 4.48% decline.

Other major tech stocks performance:

• NVIDIA: Down 3.50%

• Tesla: Down 2.96%

• Microsoft: Down 0.71%

• Apple: Down 0.56%

However, a select few tech stocks bucked the trend:

• Alphabet: Up 0.95%

• Meta: Up 1.09%

• Palantir: Surged 5.69%

Asian Markets Opening: Nikkei and KOSPI Show Divergence

Following the U.S. market close, Asian indices opened with mixed results today.

Japan’s Nikkei 225 index maintained its strength after the opening bell. As of approximately 8:00 AM (Beijing Time), it was up 245.31 points (0.40%) to 61,679.50, as investors continued to digest the Fed's latest rate decision and a flurry of corporate earnings.

Conversely, South Korea's KOSPI index continued to face heavy selling pressure. The index tumbled by approximately 5.98% at the open, hitting a low of 5,262.77. As of the time of writing, it was trading at 5,663.24, down 360.42 points (5.98%).

Moving forward, beyond U.S. employment and inflation data, market valuations for tech stocks will hinge on the upcoming earnings reports from giants such as Apple and Amazon, as well as indications of whether capital expenditure in the AI industry will continue to grow.

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